Signet Completes Zale Corporation Acquisition
Bermuda-based Signet Jewelers Ltd — the largest specialty retail jeweler in the US and the UK — has completed its acquisition of Zale Corporation for $21 per share in cash and a total consideration of $1.46 billion following the approval of the transaction by a majority of Zale’s stockholders at the Zale special meeting held earlier today.
With over $6.2 billion in pro-forma revenue, Signet now operates over 3,600 locations under the major retail store brands of Kay, Jared, and Zales in the US; H.Samuel and Ernest Jones in the UK; and People’s in Canada. Signet also now operates kiosks in the US under the brand Piercing Pagoda.
“Having now closed the acquisition of the Zale Corporation, we have entered a new era of growth and transformation for our Company and our people,” said Mike Barnes, Signet Chief Executive Officer. “I am truly excited to have the Zale team joining the Signet family and I, and our leadership team, look forward to building upon the strengths of the entire organization.”
Signet financed the transaction with a 2-year asset backed accounts receivable securitization facility of $600 million; 10-year senior unsecured notes of $400 million; a 5-year bank term loan of $400 million; and internal cash. Based on current levels of base interest rates for each of the financing transactions and an assumed credit-adjusted margin for Signet, initial interest on the financings is estimated at a weighted average rate per annum of approximately 2.60%.
